An annual study of physical science graduate students' background characteristics and degree recipients' employment outcomes was conducted for 1994. Surveys were mailed to about 13,000 graduate physics students and 6,800 were returned. Highlights include the following: (1) most U.S. citizens take an average of 6.5 years to complete a doctoral degree in physics, up from 5.3 years in 1970; (2) the number of women in physics graduate study has increased from 4 percent to 15 percent over the past 25 years; (3) the percentage of U.S. minorities enrolling in physics graduate study continues to be small; (4) of doctoral recipients who secured U.S. employment, two-thirds accepted postdoctoral positions while the rest accepted permanent or other temporary positions; (5) as in past years, condensed matter was the most frequently reported sub-field of study for physics graduate students, and experimental research was the most frequently reported type of research methods used compared to theoretical and computer simulation; (6) a greater percent of astronomy doctoral degree recipients is granted to U.S. citizens and women compared with the distribution of physics doctoral degrees granted; and (7) among U.S. citizens, the source of financial support differed by gender as women were more likely than men to receive fellowships and less likely to be research assistants. (JB)